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Annual Report 2009 FAN MILK GROUP 50 years in Africa
Annual Report 2009
Fan Milk group 50 years in Africa
2
VisionFan Milk is the leading dairy company in West Africa
MissionFan Milk will create business development and profits to the benefit of all stakeholders by producing high quality Fan Milk branded products that are offered to the population at large
3 Introduction
4 The Fan Milk history
6 The Fan Milk business concept
8 Fan Milk’s focus on Africa
10 Fifty years Anniversary in Ghana
12 Fan Milk Nigeria
14 Fan Milk Togo through 25 years
16 The challenge in the Ivory Coast
17 Pioneers in Liberia
18 How we work
21 The people in Fan Milk
Financial statements 2009
23 Management’s statement
24 Independent auditor’s report
25 Management’s review
27 Income statement
28 Balance sheet
30 Cash flow statement
31 Accounting policies
35 Notes
37 Addresses
Contents
FAN MILK GHANA
55.45% SHARE
EMIDANDENMARK 100% SHARE
FAN MILK INTERNATIONALDENMARK
FAN MILK NIGERIA
62.22% SHARE
FAN MILK IVORY COAST
60% SHARE
FAN MILK LIBERIA
80% SHARE
FAN MILK TOGO
100% SHARE
FAN MILK BENIN
100% SHARE
FAN MILK BURKINA FASO
100% SHARE
3
On behalf of Fan Milk International it is a great pleasure for me to present the Annual Report for 2009 and thereby invite you to celebrate Fan Milk’s 50 years anniversary with us.
Besides marking our 50 years long history in West Africa the Annual Report 2009 is the first time we can present consolidated annual accounts for the Fan Milk Group. With this report we aim to tell you about the Fan Milk history and our activities in West Africa over the last five decades.
Fan Milk has proven its strength with the development of a business concept that continuously adapts to the local environment and thereby contributes positively to the stakeholders and the society in which we operate.
Over the years, Fan Milk has created thousands of jobs and continues to create new opportunities for the local population in West Africa. Furthermore, Fan Milk has contributed to the industrial development in West Africa by constantly implementing new technologies and pro-duction methods.
Together with Fan Milk employees in Denmark and West Africa, I would like to take this opportunity to extend our congratulations to the Emborg family who founded the Company 50 years ago, and who still remains a major shareholder of the Company.
Preben SunkeChairman
Introduction
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During several visits to West Africa in the mid 1950’s, the Danish entrepreneur, Erik Emborg, realized that there was a market for locally produced dairy products in Ghana. By combining his own skills in trading with Danish knowhow in dairy science, he created one of the first dairy business-es in Ghana in 1960. Availability of fresh milk is limited in West Africa so the manufacturing principle was based on reconstituting milk from milk powder originating from surplus milk in Denmark. The company was called Ghana Milk Company Ltd., but already in 1962, the Fan Logo was introduced and the company changed name and became known as Fan Milk.
At the time, several West African countries had gained in-dependence and the region was thriving. A combination of national pride in the new born nations, well-balanced in-frastructures, agriculture and a developing industry paved the way for high hopes and it also carried Fan Milk through
a successful startup in Ghana. In 1963, Erik Emborg passed the model on to Nigeria and created a sister company in the city of Ibadan.
Unfortunately, things changed rapidly. The new countries faced difficulties, both politically and economically, and during the following two to three decades the young independent countries had a hard time with several coup d’états and economic decline. Fan Milk survived despite the difficulties because consumers had learned to appre-ciate the affordable high quality products.
Even though the worst of times occurred during the 1980’s Fan Milk had the strength to develop further. In 1985, an investment was made in Togo in collaboration with the In-dustrialisation Fund for Developing Countries. The political and economic development in the Francophone countries created the OEUMOUA agreement and that allowed Fan Milk to develop sales and distribution companies in the neighbouring countries. The first exports started to Benin in 1992 and four years later to Burkina Faso.
Fortunately, the positive development has continued into the 21st century and we share the dream about a brighter future for Africa and West Africa in particular. Fan Milk has therefore continued its development by investing in two more countries, the Ivory Coast in 2002 and Liberia in 2009. Fan Milk today offers unique frozen dairy products, juice and juicedrinks to a total population of more than 200 million people inhabiting seven West African countries.
The Fan Milk history
We share the dream about a brighter future for Africa and West Africa in particular
5
We cannot tell the history of Fan Milk without mentioning Henning plenge Jacobsen, Director in Fan Milk international from 1970 to 1999.
Henning Plenge Jacobsen began his career in Fan Milk Ghana in January 1961 as Production Manager. At that time, the total staff was only 15 people with Henning Plenge Jacobsen in charge of all operations from production to the distribution and marketing of the products. He recalls the first years as a challenging but still very enjoyable time as he was part of creating the foundation of the Company. In the first years, Fan Milk only relied on sale to restaurants, shops and a few kiosks, but Henning Plenge Jacobsen envisaged that more prod-ucts could be sold if presented directly to the consumers.
Henning Plenge Jacobsen had a brilliant idea: “Let us try with a bicycle.” At first Henning Plenge Jacobsen bought six second hand carrier bikes and had a wooden box made that was placed in the front of the bicycle.
Immediately the concept became a success as Fan Milk could now reach all corners of Accra, the capital in Ghana. After some months, a shipment with 50 bicycles was imported from Denmark and later on insulated cooling boxes made of glass fibre were designed to better protect the frozen products from melting in the sun. Today, the bicycles are supplemented with pushcarts and head-boxes, but the concept of presenting the products directly to the consumer remains unchanged. Henning Plenge Jacobsen returned to Denmark in 1969 and the fol-lowing year he became Director in Fan Milk International and put in charge of all the dairy plants in West Africa.
Henning Plenge Jacobsen retired as Managing Director of Fan Milk International in 1999 and having turned 70 in 2002 he retired as board member. During his more than 40 years with Fan Milk he made an invaluable contribution and ensured that Fan Milk is today reknown throughout West Africa.
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The founder, Erik Emborg, was gifted with an eye for business opportunities. During his career he managed to establish different businesses based on Danish skills and knowhow and foreign market opportunities. When it comes to production of dairy products, Danish knowhow was internationally acknowledged and that enabled Fan Milk to efficiently develop and produce reconstituted dairy products according to the changing consumer preferences. To this day, these skills are crucial for our success as we have been able to keep up with the increasing pace of change.
We are proud of the sophistication we work with at our dairy plants. Our quality and production standards are based on a century of Danish dairy traditions. This includes among other things that the employees at the dairy plants are regularly trained in hygiene and how to handle milk products. Furthermore, Fan Milk’s laboratory technicians make numerous controls each day to ensure the high product quality.
The Fan Milk product portfolio has developed over time. Today, the most important products are frozen yoghurt, ice cream and chocolate milk packaged in serving sizes either in plastic sachets or carton. Fan Milk also provides ice cream in serving size cups and larger packages cater-ing for families, hotels and restaurants. In addition to the milk products, Fan Milk produces and sells juice and juicedrinks in sachets, bottles and cartons.
The Fan Milk business concept
New products are developed in collaboration with inter-national suppliers and laboratories, the Fan Milk dairy companies and the technical staff in Denmark. Fan Milk always aims to optimise the quality of the products in order to deliver value for money to the consumers.
Fan Milk is also a pioneer in the development of sales and distribution systems. Bicycle vendors were intro-duced in the early days in Ghana and today consumers can still see thousands of Fan Milk vendors on their bicycles all over West Africa. We have added push carts and more recently we are experimenting with new vend-ing equipment including motor cycles and solar-powered kiosks.
The average Fan Milk staff count in 2009 was 1,400 while the independent agents and vendors that sell the Fan Milk products number more than 20,000.
Jens Jørgen Kollerup Managing Director
Our quality and production standards are based on a century of Danish dairy traditions
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THe iMporTance oF
Ever since the first products were sold in the West African market in 1960, Fan Milk has been dependent on imported raw and packaging materials as well as equipment for both the dairy plants and the distribution of finished goods. The bulk of the imported goods are sourced through the Danish sourcing and trading company, Emidan. With more than 50 years of trading experience and connection to more than 200 high quality suppliers worldwide, Emidan is an important partner for Fan Milk. Emidan also handles the logistical side of all the shipments from suppliers around the world to the destination ports in West Africa.
This unique constellation was implemented by Erik Emborg who considered it vital for the long term survival of the business. Today, Henrik Kruhöffer is in charge of Emidan and he often reminds the organisation of the words from the founder;
“Remember that the first dollar on your bot-tom line comes from efficient procurement.”
In a more and more globalized world the consolidated procurement and logistic con-cept has become ever more important. The concept still ensures cost efficient procure-ment and it enables the Fan Milk companies to focus on the core business of production, sales and distribution.
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Fan Milk’s focus on Africa
The industrialization Fund for Developing countries (iFu) was established by the Danish government in 1967. The Fund’s purpose is to provide capital for investments in developing countries together with Danish partners and today the main focus area for the Fund is africa. iFu has provided the following perspective on Fan Milk:
Certainly there are pros and cons when it comes to con-ducting business in African countries. Among the chal-lenges are the deficient basic infrastructure and in most countries, there is also a difficult bureaucracy to deal with.
In the most recent “Doing Business” report from the World Bank, Africa is characterised as the most difficult continent in the world to do business in.
More important is the positive side. The economic growth in Africa on average is much higher than in Europe and the United States. During 2009, the Sub-Saharan countries had an average increase in real GDP of 3.5%. In the same period the European Union had a 4.2% decrease in real GDP. Another notable improvement has been the grow-ing co-operation between African countries that makes it easier to transport goods from one country to another.
BoTToM oF THe pyraMiDThough Africa is the poorest continent in the world, counting 34 countries out of the 50 poorest countries worldwide according to the UN, the total population of 900 million people still makes the continent interesting for business activities especially for companies that ad-dress the consumers at the Bottom of the Pyramid, the so-called BoP.
In brief, the BoP theory sees the poorest people as cre-ative entrepreneurs and value-demanding consumers.
“In African countries there is big demand for affordable products. If you have a good product that sells for 25 Eurocents or less, then you have an enormous market,” Jens Lund Sørensen says.
Jens Lund Sørensen, Senior Investment Manager at IFU was the first representative who came across Fan Milk and he initiated 25 years of partnership. Today, Hans-Jørgen Nyegaard is the Senior Investment Manager at IFU who is responsible for the cooperation with Fan Milk.
coMMiTMenT anD paTienceSince the first Fan Milk Company began its operations in Accra in 1960, Fan Milk has gradually expanded during the years. According to Hans-Jørgen Nyegaard, the long term commitment and patience have been among the core values contributing to the progress of the company.
“Through the years, Fan Milk has built a structure that makes it easier to enter new countries. They know the many faces of Africa, having operated in different coun-tries through good and bad times,” he says.
The Industrialisation Fund for Developing Countries has experienced an increased interest from Danish compa-nies who consider investing in Africa. In 2009, half of the new investments were placed in Africa and since 1970, the Fund has contributed to investments of more than 4 billion Euros in the African continent together with Danish partners.
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Fan Milk inTernaTional anD iFu In the 1980’s, the Industrialisation Fund for Developing Countries (IFU) contacted Fan Milk International to establish a part-nership in Togo. IFU had seen Fan Milk’s progress in Ghana and Nigeria, and IFU saw a potentially good partner in Fan Milk International. Since the first investment in Fan Milk Togo in 1985, IFU and Fan Milk International have collaborated in most other Fan Milk projects.
“Fan Milk is a good example for IFU to show to others that it is indeed possible to conduct business in Africa contributing
to the social and economic development in the host countries,” Jens Lund Sørensen from IFU says.
The 25 years of partnership have helped Fan Milk, according to Managing Director Jens Jørgen Kollerup.
“IFU has provided Fan Milk with an inter-national network usually only available to larger international corporations. IFU’s profound business knowledge and official status has given Fan Milk many synergies during the years,” Jens Jørgen Kollerup says.
50 years in West Africa provides Fan Milk with a profound insight into making sustainable business in Africa
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Fifty years Anniversary in Ghana
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Thousands of vendors wearing their characteristic blue uniforms offer Fan Milk products for sale everywhere in ghana. along the main roads in the capital city accra giant billboards display the ghanaian football player and superstar Michael essien enjoying a Fanyogo. altogether Fan Milk has become among the best known brands in the country.
Fan Milk was listed on the Ghana Stock Exchange in 1990 as one of the first companies. Since then the stock value has increased tremendously to the benefit of thousands of Ghanaian shareholders, and the Company is today one of the most successful in Ghana.
THe early years Former General Manager Jack Dodoo, who worked with Fan Milk in the period from 1962 to 1989, recalls the first years as a difficult time for the company.
“We had a hard time making Ghanaians drink our fresh milk, since the only milk taste they knew was cream milk. Furthermore, the Ghanaians were used to drink milk from tin cans and not from cartons,” he says.
After a period of adapting to the local needs and prefer-ences, the company changed focus to frozen products like ice creams and ice lollies.
In 1969, Fan Milk was the first foreign company in Ghana to become a public company. At that time it was considered an extraordinary move to go public and thereby inviting Ghanaians as partners.
a neW BeginningThough Fan Milk experienced a positive growth through the late 1960’s and early 1970’s, Ghana experienced a period of economic instability in the early 1980’s causing severe difficulties for the Company.
In collaboration with the Danish Government, the Ghanaian Government and the Industrialisation Fund for Developing countries (IFU) a plan was created to revive Fan Milk. The two governments facilitated a refurbish-ment loan and subsequently Fan Milk International and IFU provided new share capital that enabled the company to commence on a new beginning. Moreover, Jesper B. Jeppesen was appointed in 1989 as Managing Director to lead the transformation of Fan Milk.
Immediately he initiated a process turning the Company around, and already in 1991 years of deficit was turned into a positive result. Despite the hard and difficult initial years, Jesper B. Jeppesen is today pleased to notice that he and the new dedicated management team as well as the hardworking members of staff were able to transform the Company into a very successful enterprise.
”We have popular products that the end-consumers are happy to consume and our vendors are happy to sell as well as the production staff are happy to produce. All in all, this creates growth on the bottom line. That in turn makes it possible to invest in new equipment, expand the Company and pay our shareholders good dividends,” he summarizes.
seen FroM THe ouTsiDeHonourable Member of Parliament, Professor Mike Oquaye has followed Fan Milk’s development over the years and he sees four notable factors for the Company’s success.
“First of all, the Company has developed a strong brand. Consumers are not asking for an ice cream, they are asking for Fan Milk. Secondly, the Company has been beneficial to the society by supporting different events and festivals. Thirdly, the Company has employed a large number of Ghanaians over time and become an attractive company to seek employment in. Finally the reason for Fan Milk’s progress in Ghana is the healthy business environment the country provides” concludes Professor Mike Oquaye.
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Fan Milk’s 50 year presence in Ghana demonstrates a successful commitment
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Fan Milk Nigeria
in 1963, Fan Milk began its operations in nigeria after having succeeded with the business model in ghana. a dairy plant was placed in the city of ibadan and a main distribution centre in lagos, the commercial capital of nigeria, located 120 kilometres southwest of ibadan. Today Fan Milk is the largest company in nigeria providing cold and frozen dairy products directly to the consumers.
Ever since the early 1960’s, the Nigerian market has been volatile. The growth of the population has created a lack of basic infrastructure, making it difficult to move around. The lack of a stable and constant electricity supply makes it impossible to rely on the public grid.
In order to maintain a nonstop production, Fan Milk has been forced to invest in its own energy supply. Large generators are therefore on standby 24 hours a day to deliver electricity to the Company’s activities whenever electricity from the public sources is not available.
Such challenges and many more of a similar nature make it difficult to manage Nigerian enterprises.
However, after more than 16 years of working in Nigeria, the Managing Director since 2007, Jens Erik Møllenbach is well prepared and he enjoys the country and its complex business environment.
THe enorMous MarkeT Though there are several obstacles in doing business in Nigeria, the perspective is attractive. Thanks to the large and growing population and being a top oil exporter Nigeria is one of the largest economies in Africa. During the last five years the country has had an economic growth above five percent annually.
Fan Milk’s main focus is on Nigeria’s largest city, Lagos, with a population of around 15 million people and the strongest purchasing power in the country. However, outside the city the potential is also huge. There are vast areas in the country yet to be reached by Fan Milk. Therefore, the dairy plant is gradually being enlarged and new depots are opened in order to expand the business to these areas.
More VenDors, More salesAccording to Jens Erik Møllenbach, the business base is good and priorities are clear:
“The secret behind our success is our well trained and motivated staff, the high quality of the Fan Milk products and our cold chain that delivers the products frozen all the way to the consumers,” he says and continues:
“Furthermore, every additional vendor serves more con sumers and makes the company sell more products. Therefore, our need is to introduce more and more ven-dors on the streets”.
The appearance of the vendors is important when selling dairy products. Vendors and agents are therefore being trained in hygiene and best practises concerning the sale of dairy products.
All these skills are intended to make the vendors sell more products and create a win-win situation for them-selves and Fan Milk.
In Nigeria there are several thousand independent agents and vendors selling Fan Milk products.
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With a population of almost 150 million, Nigeria is the most populous country in Africa, making it a major market for Fan Milk
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Fan Milk Togo through 25 years
conducting business in africa is often combined with unforeseen challenges, and the history of Fan Milk in Togo is not exceptional.
For the Managing Director , Hans Pedersen, the many different challenges during his time have made the com-pany stronger and always prepared. Hans Pedersen came to Togo in 1990 already well skilled with experiences from serving Fan Milk in both Nigeria and Ghana.
“Every time a new problem arises, we deal with it in the respective departments and find a solution. Several times we have had the odds stacked against us but we have always managed to handle it successfully,” Hans Pedersen says.
Fan Milk Togo experienced such difficulties during the general national strike in 1991 which closed down the factory for ten months.
A couple of years later, the Company was again in deep trouble when the currency (Fcfa) was devalued by 50% overnight causing import costs and overseas debt to double.
THe roaD To successFan Milk has been fortunate with the dedicated and loyal staff in Togo. Many employees had joined the Company at the beginning in 1985 and they remained loyal through the difficult periods.
One of them is Administration and Human Resource manager, Akuetey-Akue, who celebrates his 25 year anniversary with Fan Milk Togo. The many years of co-operating with colleagues from Denmark have made him appreciate the Danish business culture.
“The relationship among employees is forthcoming and we are like a family. Fan Milk invests in the employees who in turn remain with the Company to enjoy the benefits,” Akue says. expansion Since inception in 1985, the number of vendors has grown dramatically in the capital, Lomé and at almost every street corner Fan Milk vendors are seen.
At the same time, Fan Milk dispatches truckloads of products from Togo to the subsidiaries in Benin and Burkina Faso.
In 2009 the business developed successfully for Fan Milk Togo including the export sales. However, according to Hans Pedersen the markets are still far from having reached a saturation point.
During the past 25 years, Fan Milk Togo has expanded the number of staff from 56 to almost 300 today.
Furthermore, thousands of independent vendors and agents each day make a living selling Fan Milk products.
populaTion (MILL.) 6,0
area (SQ KM) 56,785
capiTal LOMÉ
oFFicial language FRENCH
During the years, Fan Milk Togo has overcome numer-ous challenges yet at the same time the company has managed to expand with export to neighbour-ing countries
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BeninThe main markets in Benin are the largest city Cotonou and the capital, Porto Novo. The two urban areas account for 80% of Fan Milk’s total sales in the country. All supplies are delivered with trucks on a daily basis from the dairy plant in Togo.
According to Japhet Lantigble who is responsible for Fan Milk Benin the potential for Fan Milk in the country is huge.
“There are many street corners of Cotonou where Fan Milk vendors are not yet present and in the mainland there are vast areas for Fan Milk to develop,” he adds.
Burkina FasoTwice a week a truck drives 1,100 km from the dairy plant in Togo to Ouagadougou, the capital in Burkina Faso, loaded with delicious dairy and juice products. The trip is a logistical challenge that adds to the cost of the products, which itself makes Burkina Faso a complicated market. Burkina Faso, being one of the poorest countries in the world, has a lack of purchasing power and this is obviously an explanation for a slow growth in the early years after the establishment.
During the last five years, however, things have started changing and the company posted a profit in 2009 and a solid growth is continuing in 2010.
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The challenge in the Ivory Coast
Fan Milk entered the ivory coast just prior to the coup d’état in 2002 and there has been political instability in the country ever since.
The instability has made it difficult for Fan Milk to become successfully established in the country. The company had to be restructured in 2007.
During the restructuring of the company, Fan Milk Ivory Coast has received strong support from the other Fan Milk companies.
With the help from technicians in Denmark, several production procedures have been upgraded.
“We have shared a lot of good practices with external support and it makes us able to make the production grow further,” Production Manager, Mariame Touré explains.
“We Will succeeD”Early in 2009 Abasse Kane joined Fan Milk Ivory Coast after having worked for Fan Milk Nigeria for the past four years. He has continued moving the Company forward and his first year ended up with the best December sales in the history of the company.
At Abasse Kane’s office, all the challenges confronting him have not let him lose faith in the company’s ability to prosper.
It has been paramount for the Managing Director to make the staff understand how their combined efforts are impor-tant in making Fan Milk Ivory Coast a successful business.
“We have every possibility of making the Company grow successfully. The consumers with sufficient purchasing power are here, and we offer affordable high quality products,” he says.
The potential in the country is good and Fan Milk is working hard to turn the business into a success story
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Pioneers in Liberia
in liberia, 14 years of civil war ended in 2003 and the country is still suffering from the aftermath while the infrastructure is being rapidly rebuilt.
Fan Milk conducted the first field studies in Liberia during 2007 and in October 2009 Fan Milk Liberia began selling ice cream and other frozen dairy products in the streets of Monrovia.
The Fan Milk products are being imported from the dairy plants in Togo and Ghana, simplifying the activities in Monrovia to distribution, sales and marketing.
The long term perspective is to grow the business sufficiently to justify establishment of a production facility in the country.
Opening ceremony
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How we work
The transfer of knowledge and technology has always played a key role in the development of Fan Milk. Deputy Director einar Mark christensen began his career with Fan Milk in 1978, and since then he has travelled to West africa on numerous occasions. With his colleagues in Denmark, he has contributed to the progress of the dairies in West africa.
“We assist with a wide range of organisational, as well as technical knowledge. When we send a technician all the way from Denmark to West Africa, it is not only to repair a machine, it is also to pass skills on to the staff in West Africa,” Einar Mark Christensen says.
In Togo, for instance, Fan Milk was the first company in the country to obtain an ISO-certification. Development and implementation of the system happened after close collaboration with the staff from Fan Milk International.
Knowledge sharing within the Fan Milk Group is carried out in many different ways. For example, joint training courses are carried out with employees from all the Fan Milk companies. Courses take place in-house or can be delivered by external institutions. An example of the latter was a comprehensive course in Sensory Evalua-tion of Milk and Milk products carried out in 2009 at The National Dairy Research Institute (NDRI) in Karnal, India. The course was tailor-made for a selected team of Fan Milk employees.
corporaTe social responsiBiliTy (csr)Fan Milk has a long term perspective when doing business and will strive to leave a good track record of its history. Thanks to these business principles the Company has demonstrated a successful sustainability since 1960.
Managing Director for Fan Milk International, Jens Jørgen Kollerup, explains: “We want to do business and make
profit. To do that in the long term, we need to conduct our business based on good values and ethics, otherwise we would have been let down by our employees and the consumers a long time ago.”
Fan Milk works on many aspects of CSR as illustrated in the following two examples:
csr proJecT – nigeriaFan Milk realises that CSR is a constantly expanding field and unless companies continue to improve within this area, earlier investments can easily lose their value. Fan Milk, therefore, made a comprehensive plan for the company in Nigeria to improve upon the following five particular CSR areas:
The project reinforces Fan Milk’s position as a responsible company in Nigeria with a strong social and environmen-tal profile. The implementation commenced in late 2008 and the project will be completed in 2011.
1. Environmental management (Energy savings, Waste Water Treatment, Savings in Water Consumption, Solid Waste Treatment, Environmental Management Systems)
2. CSR and supply chain management3. CSR awareness and communication4. CSR in vendor training5. HIV/AIDS
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proTecTing THe enVironMenT – gHanaFor 17 years, Fan Milk Ghana has supported a local NGO called GNASBA (Ghana National Scholarship Beneficia-ries Association). The mission of the organization is to protect the environment by cleaning local communities, planting trees and encouraging school children to take care of the environment by not littering.
Every week, the founder of the organisation, Baffour Akwasi Oppong, and his staff visit a different local community where they talk about the importance of respecting the environment.
“Our work has also encouraged the traditional counsellors to sustain their community. Sustainability is one of our key points,” Baffour Akwasi Oppong says.
In previous years, Fan Milk has also supported the planting of trees especially in the northern areas that have suffered from deforestation. This year, Fan Milk will support the planting of 20,000 trees, which is 14,000 more trees than last year.
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Hundreds of Fan Milk employees have been trained and educated through the Fan Milk companies
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The People in Fan Milk
everyday, 1,400 dedicated employees contribute to Fan Milk’s success with their different skills. in fact everyone in Fan Milk sees the improvement in individual skills as a core value benefitting the individual as well as the company.
During the past 50 years, several hundred employees have participated in courses in West Africa and abroad. One example is Charles Adepke, who started in Fan Milk Togo as an electrician. After several training and educational courses, mainly in Denmark, he is now technical manager.
Charles has been to Denmark three times since his first visit in 1999. Each time he returns with a better skill set that he passes on to his staff in the maintenance department.
“The continuous training helps me to improve my skills. The more I know, the better it is for me and for the com-pany,” Charles Adepke says.
WoMen in Managerial posiTionsDuring the past two decades, Fan Milk has succeeded in employing more women in managerial positions.
Vicky Madu is one of them. She started 20 years ago in Fan Milk Nigeria, after having obtained a BA in philoso-phy and religion.
Initially, she was appointed in a temporary research position but she soon demonstrated special skills and was gradually given more and more responsibility.
In 2006, Vicky Madu was appointed National Sales Manager.
“It has been great working for Fan Milk, as I always have had the opportunity to use my skills. Furthermore, I have been able to help make the company grow and I have been able to influence its development,” Vicky Madu says.
THe agenTs anD VenDorsLike most companies, Fan Milk relies on many supporting businesses such as agents and vendors. Today, most of them are being reached with training on how to handle Fan Milk products and also how to achieve the best from the work they do for Fan Milk. One example of this is Mercy Asante in Ghana. She started as an agent selling Fan Milk products from her doorstep in 1989. Today, she has grown to be one of the largest agents in the country and she employs 10 permanent staff in her business. As a proof of Mercy Asantes hard work she has been awarded the best National Distributor four times.
“Fan Milk believes in hard work, dedication, honesty and truthfulness. The Company will always reward your hard work. In addition, the Company is very supportive by giving me first class training in managerial skills,” Mercy Asante says.
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Fan Milk GroupFinancial sTaTeMenTs 2009
23 Management’s statement 24 Independent auditor’s report25 Management’s review27 Income statement28 Balance sheet30 Cash flow statement31 Accounting policies35 Notes
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Management’s statement
The Board of Directors and Managing Director have on this day considered and adopted the consolidated financial statements for the financial year 1 January 2009 - 31 December 2009 for Fan Milk Group.
The consolidated financial statements are presented in accordance with the Danish GAAP.
In our opinion, the consolidated financial statements give a true and fair view of the group’s assets, liabilities and financial position as at 31 December 2009 and of the results of the group’s activities and the consolidated cash flows for the financial year 1 January 2009 - 31 December 2009.
In our opinion the management’s review gives a true and fair review of the matters dealt with in the review.
The consolidated financial statements are submitted for adoption by the general meeting.
Aalborg, 21 May 2010
Managing Director
Jens Jørgen Kollerup
Board of Directors Preben Sunke Christian Emborg Per Søndergaard PedersenChairman Morten Jensen Sven Kristian Riskær
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Independent auditor’s report
To THe sHareHolDers oF Fan Milk inTernaTional a/s
We have audited the consolidated financial statements and the management’s review of Fan Milk Group for the financial year 1 January 2009 - 31 December 2009. The consolidated financial statements comprise the income statement, balance sheet, accounting policies and notes as well as the cash flow statement. The consolidated financial statements and the management’s review have been prepared in accordance with the Danish GAAP.
The Board of Directors and Managing Director’s respon-sibility for the consolidated financial statements, the financial statements and the management’s reviewThe Board of Directors and Managing director are responsi-ble for the preparation and fair presentation of consolidated financial statements in accordance with the Danish GAAP and for preparing a management’s review which includes a true and fair review in accordance with the Danish GAAP. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of consolidated financial statements and a management’s review that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circum-stances.
auditor’s responsibility and basis of opinionOur responsibility is to express an opinion on the con-solidated financial statements and the management’s review based on our audit. We conducted our audit in accordance with Danish auditing standards. Those stan-dards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the consolidated financial statements and management’s review are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the con-solidated financial statements and the management’s
review. The procedures selected depend on the audi-tor’s judgement, including the assessment of the risk of material misstatement in the consolidated financial statements and the management’s review, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the company’s preparation and fair presentation of consoli-dated financial statements as well as for the preparation of a management’s review that includes a true and fair review, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the com-pany’s internal controls. An audit also includes evaluat-ing the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and Managing Director, as well as evaluating the overall presentation of the consolidated financial statements and the management’s review.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our audit has not resulted in any qualifications.
opinionIn our opinion, the consolidated financial statements give a true and fair view of the group’s financial position at 31 December 2009 and of the results of the group’s operations and cash flows for the financial year 1 January 2009 - 31 December 2009 in accordance with the Danish GAAP.
We also believe that the management’s review includes a true and fair review in accordance with the Danish GAAP.
Aalborg, 21 May 2010BeierholmState Authorized Public Accounting Company
Søren V. PedersenState Authorized Public Accountant
25
Management’s review
Amounts in DKK ’000 2009 * 2008 * 2007 * 2006
key Figures
income statement
Revenue 633,361 634,287 569,471 521,558Index 121 122 109 100
Gross profit 368,664 332,157 287,222 273,701Index 135 121 105 100
Profit before depreciation, amortisation, etc. (EBITDA) 158,962 124,270 73,260 68,695Index 231 181 107 100
Operating profit (EBIT) 119,890 87,740 40,822 30,848Index 389 284 132 100
Net financial items -14,799 -23,174 -12,925 -13,863Index - - - -
Net profit for the year 76,346 48,725 10,710 32,174Index 237 151 33 100
Net profit for the year, parent company’s share 48,935 32,519 2,748 27,528Index 178 118 10 100
Balance sheet
Total assets 418,304 372,097 388,377 402,633Index 104 92 96 100
Equity 227,739 170,560 140,812 212,054Index 107 80 66 100
Equity, parent company’s share 154,632 115,547 96,549 162,262Index 95 71 60 100
Dividends 2,760 2,639 39,013 11,472Index 24 23 340 100
Net interest-bearing debt 21,525 65,033 56,633 22,694Index 95 287 250 100
raTios
profitability
Gross profit ratio 58.2% 52.4% 50.4% 52.5%
Return on equity, consolidated 38.3% 31.3% 6.1% 15.2%
Return on equity, parent company 36.2% 30.7% 2.1% 33.9%
Return on invested capital (ROAIC) 49.5% 40.5% 18.9% 26.3%
Profit margin 19.0% 13.8% 7.2% 5.9%
equity ratio 54.4% 45.8% 36.3% 52.7%
* As 2009 is the first year in which consolidated financial statements are prepared, the comparative figures for 2008, 2007 and 2006 represent non-audited figures.
computation of ratios The ratios have been computed in accordance with the recommendations of the Danish Society of Financial Analysts:
gross profit ratio Gross profit x 100 return on invested Operating profit x 100 equity ratio Equity, end of year x 100 Revenue capital (roaic) Average invested capital Total assets
return on equity Profit for the year after tax x 100 profit margin Operating profit x 100 Average equity Revenue
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Management’s review
Main activities The activities of the group are primarily production, distribution and sale of dairy products such as yoghurt, ice cream and chocolate milk, etc. as well as juice and juice drinks in West Africa. Furthermore, the Danish companies carries out a number of supporting activities, such as com-prehensive purchasing and distribution of raw materials and packaging materials, business development assis-tance, consultancy services and management support.
Financial performance With a 10% increase in product volume sold and a 17% increase in Revenue measured in local currencies, 2009 has been a year of stable growth. When measured in DKK Revenue in 2009 was on level with that of 2008.
The global decline in prices for raw materials and packaging combined with further optimization of Group Procurement and production efficiency lead to a gross profit increase of 11% compared to 2008. Despite the increased activity level the capacity cost was kept at the same level as the year before, leading to an operating profit (EBIT) in 2009 of mDKK 120, 37% above 2008.
The operating profit for 2009 is considered satisfactory.
special risksAs the group is primarily conducting business involving dairy operations in countries located in West Africa, the group is constantly exposed to risks primarily relating to:
• Political situation• Monetary situation.
The group tries to minimise the risks through increased geographical spread of its activities and by partial hedging of monetary risks.
corporate social responsibilityThe group is conscious of its corporate social respon-sibility with respect to human rights, social matters, environmental and climate matters and combating of corruption. The group has plans about joining the UN Global Compact in 2010.
External environmentThe group’s manufacturing and distribution activities in West Africa have an impact on the surrounding environment. The company’s objective is to reduce any negative impacts of its activities to a minimum and the general policy is that the companies strive to stay ahead of local legislative requirements.
knowledge resourcesThe group has special competencies with regard to exploiting business opportunities in Africa, including great cultural understanding and wide insight into African business conditions.
research and development activitiesProduct development and process optimization are carried out at local company level. A great job is done to continuously develop new flavours and packaging to better suit the consumers. All costs involved so far have been expensed.
The group’s expected developmentThe business has started on a good note in 2010 in spite of the slowdown in economic growth following the 2008/2009 financial crisis. The Group expects to be able to grow Revenue as well as Earnings in 2010 compared to 2009.
Jens Jørgen KollerupManaging Director
27
Income statement
Amounts in DKK ’000 2009 * 2008
Note revenue 633,361 634,287
Cost of sales -264,697 -302,130
gross profit 368,664 332,157
Personnel cost -93,500 -92,271 Other external costs -116,202 -115,616
profit before depreciation, amortisation, etc. (eBiTDa) 158,962 124,270
Depreciation and amortisation: 1 Intangible assets -85 -852 Property, plant and equipment -39,835 -37,0462 Loss/profit on disposal of property, plant and equipment 848 601 operating profit before financial items and tax (eBiT) 119,890 87,740 Financial income 5,767 1,207 Financial expenses -20,566 -24,381 Total net financial items -14,799 -23,174 profit before tax (eBT) 105,091 64,566 3 Tax -28,745 -15,841 net profit for the year 76,346 48,725 Minority shareholders’ share -27,411 -16,206 net profit for the year, parent company’s share 48,935 32,519 Distribution of net profit for the year Dividend 0 0 Retained earnings 48,935 32,519 Total 48,935 32,519 * As 2009 is the first year in which consolidated financial statements are prepared, the comparative figures for 2008 represent non-audited figures.
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Balance sheet
asseTs
Amounts in DKK ’000 31.12.2009 31.12.2008
Note Trademark rights 880 407
1 Total intangible assets 880 407
Land and buildings 42,404 44,226 Plant and machinery 90,709 84,494 Leasehold improvements 1,037 0 Other plant, fixtures and fittings, tools and equipment 68,405 51,146
2 Total property, plant and equipment 202,555 179,866
Total non-current assets 203,435 180,273
Raw materials and consumables 82,235 80,708 Work in progress 189 231 Manufactured goods and goods for resale 8,296 6,807
Total inventories 90,720 87,746
Other trade receivables 8,220 9,760 Corporation tax receivable 2,395 2,675 Deferred tax asset 0 3,792 Other receivables 35,725 31,743
Total receivables 46,340 47,970
cash and bank balances 77,809 56,108
Total current assets 214,869 191,824
Total assets 418,304 372,097
29
eQuiTy anD liaBiliTies
Amounts in DKK ’000 31.12.2009 31.12.2008
Note Share capital 12,000 12,000 Retained earnings 142,632 103,547 Proposed dividend for the financial year 0 0
4 equity, parent company’s share 154,632 115,547 4 Equity, minority interests 73,107 55,013 Total equity 227,739 170,560 Deferred tax 3,008 0 Other provisions 21,656 22,339 Total provisions 24,664 22,339 Credit institutions 35,908 0 Payables to group parent company 0 13,750 Other payables 10,554 16,916 Short-term portion of long-term liabilities -14,573 -13,750 Total long-term payables 31,889 16,916 Short-term portion of long-term liabilities 14,573 13,750 Credit institutions 52,872 90,475 Trade payables 28,462 29,301 Other payables 34,125 20,693 Tax 3,980 8,063 Total short-term payables 134,012 162,282 Total payables 165,901 179,198 Total equity and liabilities 418,304 372,097
5 Shareholders
30
Cash flow statement
Amounts in DKK ’000 2009
profit before tax 105,091 Adjustment for non-cash operating items: Depreciation of non-current assets, incl. loss/profit on disposals 39,072Other operating items incl. exchange rate adjustments -2,155
operating profit adjusted for non-cash items 142,008 Taxes paid -25,748Change in working capital: Inventories -2,974 Receivables -2,443 Trade payables -839 Other payables 13,432
cash flow from operating activities 123,436
Net investments in non-current assets: Intangible assets -558 Property, plant and equipment -76,804
cash flow from investing activities -77,362
Proceeds from loans and credit facilities 33,980Repayment of long-term debt -18,184Dividends paid, minorities -3,239Capital contribution, minorities 673
cash flow from financing activities 13,230
Total cash flow for the year 59,304
Cash and bank balances, beginning of year -34,367Net cash flow for the year 59,304
cash and bank balances, end of year 24,937 Cash and bank balances, end of year, comprises: Cash and bank balances 77,809 Credit institutions -52,872
Total 24,937
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Accounting policies
general
The consolidated financial statements have been pre-sented in accordance with the Danish Financial State-ments Act (Danish GAAP) for large class C groups and companies. The accounting policies have been applied consistently with last year.
Basis of recognition and measurementIncome is recognised in the income statement as earned, including value adjustments of financial assets and liabilities. All expenses, including depreciation, amor-tisation, impairment losses and write-downs, are also recognised in the income statement.
Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the company and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when they are reasonably likely to occur and can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.
On recognition and measurement, account is taken of foreseeable losses and risks arising before the time at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date.
consoliDaTeD Financial sTaTeMenTs
The consolidated financial statements include the parent and any subsidiaries in which the parent, directly or indirectly, holds more than 50 per cent of the voting rights or in which it has a controlling influence through agreements.
All financial statements used for consolidation are pre-pared in accordance with the accounting policies of the group.
The consolidated financial statements consolidate the audited financial statements of the parent and its sub-sidiaries, eliminating intra-group income and expendi-ture, shareholdings, balances and dividends as well as unrealised intra-group gains and losses on inventories and non-current assets.
Newly acquired or newly founded entities are recognised in the consolidated financial statements as from the time of acquisition. Divested or discontinued entities are recognised in the consolidated income statement up until the time of divestment or discontinuation. Comparative figures are not restated for newly acquired, divested or discontinued entities.
New entities are recognised in accordance with the purchase method, according to which the identifiable assets and liabilities of the newly acquired entities are recognised at fair value at the time of acquisition. A provision is made to cover expenses incidental to decided and announced restructuring in the acquired entities in connection with the acquisition. The tax effect of any reassessments is recognised.
The cost of the investments in the acquired entities is set off against the proportionate share of the fair value of the subsidiaries’ net assets at the time of the estab-lishment of the group relationship.
The consolidated goodwill determined at the time of acquisition (positive balance) is recognised as an asset and amortised according to the straight-line method based on an individual assessment of the useful life of the asset, the maximum period being, however, 20 years. Consolidated negative goodwill (negative balance), reflecting an expected adverse development in the en-terprises in question, is recognised in the balance sheet under deferred income and is reduced as the conditions underlying the negative balance are realised.
Goodwill and negative goodwill from acquired enterprises can be adjusted until the end of the year after the year in which the acquisition took place.
MinoriTy inTeresTs
The financial items of the subsidiaries are recognised in full in the consolidated financial statements. When stating the consolidated net profit or loss and equity, the proportionate share of any such net profit or loss and equity of the subsidiaries as can be attributed to minority interests is stated separately.
32
Foreign currency
The financial statements are presented in Danish kroner.
On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate applicable at the transaction date. Exchange rate differ-ences between the exchange rate applicable at the trans-action date and the exchange rate applicable at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rate applicable at the balance sheet date. The difference between the exchange rate appli-cable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised in the income state-ment under financial income or expenses.
Foreign subsidiaries and associates are considered sepa-rate entities. Their income statements are translated using the average exchange rate for the month, and the balance sheet items are translated using the exchange rate applicable at the balance sheet date. Exchange rate adjustments arising from the translation of the equity of foreign subsidiaries at the beginning of the year using the exchange rates applicable at the balance sheet date and the translation of income statements from average exchange rates using the exchange rates applicable at the balance sheet date are recognised directly in equity.
DeriVaTiVe Financial insTruMenTs
On initial recognition, derivative financial instruments are measured at cost and subsequently at fair value in the balance sheet. Positive and negative fair values of derivative financial instruments are included in other receivables under assets and other payables under liabilities, respectively.
Changes in the fair value of derivative financial instru-ments classified as and fulfilling the criteria for hedging the fair value of a recognised asset or liability are recog-nised in the income statement together with any changes in the fair value of the hedged asset or liability.
Changes in the fair value of derivative financial instru-ments classified as and fulfilling the conditions for
hedging future assets and liabilities are recognised in other receivables or other payables as well as in equity. In the event that the future transaction results in the recognition of assets or liabilities, any amounts previ-ously recognised in equity will be transferred to the cost of the asset or the liability, respectively. In the event that the future transaction results in income or expenses, any amounts recognised in equity will be transferred to the income statement in the period in which the hedged item affects the income statement.
For derivative financial instruments which do not qualify as hedging instruments, changes in the fair value are recognised in the income statement on an ongoing basis.
Changes in the fair value of derivative financial instru-ments which are used for hedging net investments in independent foreign subsidiaries or associates are recognised directly in equity.
incoMe sTaTeMenT
revenueIncome from the sale of goods is recognised in the income statement provided that delivery has been effected and the risk has passed to the buyer by the end of the financial year. Revenue is determined at fair value less VAT and discounts.
Income from services is recognised on a straight-line basis in line with delivery.
Depreciation and amortisationThe amortisation of intangible assets and depreciation of property, plant and equipment aim at systematic depreciation and amortisation over the expected useful lives of the assets. The following useful lives are applied by the group:
Useful life
Trademark rights 5 yearsBuildings 10 - 20 yearsPlant and machinery 5 - 10 yearsLeasehold improvements 5 yearsOther plant, fixtures and fittings, tools and equipment 2 - 10 yearsGoodwill 1 - 20 years
Accounting policies
33
New acquisitions of plant and machinery as well as other plant, fixtures and fittings, tools and equipment with a cost not exceeding DKK 12,300 each are recognised in the income statement in the year of acquisition.
net financial itemsInterest income and interest expenses, exchange rate adjustments of foreign currency as well as realised and unrealised capital gains and losses are recognised under net financial items. Amortisation of capital losses and expenses relating to mortgage debt and receivables etc. is recognised on an ongoing basis as financial expenses and financial income, respectively.
extraordinary itemsExtraordinary items comprise income and expenses re-sulting from events or circumstances which clearly devi-ate from the ordinary operations of the group and which thus cannot be expected to occur frequently or regularly.
TaxThe current and deferred taxes for the year are recognised in the income statement as taxes for the year with the portion attributable to the net profit or loss for the year. The portion attributable to equity is recognised directly on equity.
Balance sHeeT
intangible assetsIntangible assets are measured in the balance sheet at the lower of cost less accumulated amortisation and recoverable amount.
property, plant and equipmentProperty, plant and equipment are measured in the balance sheet at the lower of cost less accumulated depreciation and recoverable amount.
Cost comprises the purchase price and any costs directly attributable to the purchase until the date when the asset is available for use. The cost of self-constructed assets also comprises production overheads. Production over-heads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Borrowing costs are not included in the cost.
impairment of assetsThe carrying amount of intangible assets and property, plant and equipment as well as investments in subsidiar-ies and associates is reviewed annually for indications of impairment over and above the amortisation and deprecia-tion amounts.
If indications of impairment exist, an impairment test is conducted of individual assets or groups of assets. The assets or groups of assets are written down to the lower of recoverable amount and carrying amount.
As recoverable amount, the higher of net selling price and value in use is used. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the disposal of the asset or group of assets after the expiry of their useful lives.
inventoriesInventories are measured at the lower of cost according to the FIFO principle and net realisable value.
The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus ex-penses incurred directly in connection with the purchase.
The cost of manufactured goods and work in progress is determined as the value of direct and indirect material and labour costs. Production overheads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Borrowing costs are not included in the cost.
The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.
receivablesReceivables are measured at amortised cost, which usually corresponds to nominal value, less write-downs for bad debts.
Write-downs for bad debts are determined on the basis of an assessment of the individual receivables.
34
prepaymentsPrepayments under assets comprise costs incurred in respect of the coming financial year.
other securities and investmentsOther securities and investments are measured at fair value in the balance sheet.
equityThe proposed dividend for the financial year is recognised as a special item under equity.
Net revaluation of investments in subsidiaries and associates is recognised under equity in the reserve for net revaluation according to the equity method to the extent that the carrying amount exceeds the acquisition cost.
provisionsOther provisions, including pension commitments etc., are recognised when the company has a legal or con-structive obligation at the balance sheet date and it is probable that such obligation will draw on the financial resources of the company. The provision is measured based on an estimate of the fair value of the obligation.
current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxa-ble income for the year, adjusted for tax paid on account.
Deferred tax liabilities and deferred tax assets are com-puted on the basis of all temporary differences between the carrying amount and tax base of assets and liabilities and are recognised in the balance sheet at the tax rate applicable. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where tem-porary differences, except for acquisitions, have arisen at the date of acquisition without affecting either the net profit or loss for the year or the taxable income.
Deferred tax assets are recognised, following an assess-ment, at the expected realisable value through a set-off against deferred tax liabilities or against tax on future earnings.
payablesLong-term payables are measured at cost at the time of contracting such payables (raising the loans). Payables are subsequently measured at amortised cost, where capital losses and borrowing costs are distributed over the term of the payables on the basis of the calculated, effective rate of interest at the time of contracting such payables.
Short-term payables are also measured at amortised cost, which usually corresponds to the nominal value of the debt.
Any remaining lease liability for assets held under a finance lease is measured in the balance sheet as mort-gage debt, and the interest share of the lease payment is recognised in the income statement on an ongoing basis.
casH FloW sTaTeMenT
The cash flow statement is prepared using the indirect method, showing cash flow from operating, investing and financing activities as well as changes in cash flow for the year and cash and cash equivalents at the beginning and end of the year.
Cash flow from operating activities comprises net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.
Cash flow from investing activities comprises the addi-tion and disposal of intangible assets, property, plant and equipment and investments adjusted for changes in receivables and payables in respect of such items.
Cash flow from financing activities comprises financing from and dividend paid to shareholders as well as the arrangement and repayment of long-term payables.
Cash and cash equivalents at the beginning and end of the year comprise cash and short-term bank loans.
Accounting policies
35
1 inTangiBle asseTs
Amounts in DKK ’000 Trademark rights
Cost as at 31 December 2008 1,088Exchange rate adjustment 0Additions during the year 558Disposals during the year 0
Cost as at 31 December 2009 1,646
Amortised as at 31 December 2008 -681Exchange rate adjustment 0Amortisation for the year -85
Amortisation as at 31 December 2009 -766
Carrying amount at 31 December 2009 880
2 properTy, planT anD eQuipMenT other plant, fixtures and land plant leasehold fittings, tools Amounts in DKK ’000 and buildings and machinery improvements and equipment
Cost as at 31 December 2008 64,050 178,287 1,508 133,458Exchange rate adjustment -4,307 -14,974 0 -12,045Additions during the year 4,825 34,417 1,090 38,422Disposals during the year 0 -3,834 0 -10,185
Cost as at 31 December 2009 64,568 193,896 2,598 149,650
Depreciated as at 31 December 2008 -19,824 -93,793 -1,508 -82,312Exchange rate adjustment 1,106 7,687 0 6,587Depreciation for the year -3,446 -20,218 -53 -15,300Disposals during the year 0 3,137 0 9,780
Depreciation as at 31 December 2009 -22,164 -103,187 -1,561 -81,245
Carrying amount as at 31 December 2009 42,404 90,709 1,037 68,405 Selling price of disposed assets 0 1,235 0 712Carrying amount 0 697 0 402
Profit 0 538 0 310
Notes
36
4 eQuiTy
share retained proposed Amounts in DKK ’000 capital earnings dividends Total
Equity at 31 December 2008 12,000 103,547 0 115,547Exchange rate adjustments 0 -9,561 0 -9,561Net profit for the year 0 48,935 0 48,935Net changes in equity 0 -289 0 -289
Equity as at 31 December 2009 12,000 142,632 0 154,632
Amounts in DKK ’000 31.12.2009 31.12.2008
Minority interests as at 31 December 2008 55,013 -Dividend paid -3,239 -Share of profit for the year 27,411 -Capital contributions 673 -Exchange rate adjustments -6,751 -
Minority interests as at 31 December 2009 73,107 55,013
5 sHareHolDers
The following shareholders have been registered in the parent company’s shareholders register holding more than 5% of the share capital:
Skandia Kalk Holding ApS, AalborgEquity Datterholding 15 (FM) ApS, Copenhagen.
3 Tax
Amounts in DKK ’000 2009 2008
Current tax for the year 20,301 14,438Deferred tax for the year 8,406 1,446Adjustment of tax in respect of previous years 38 -43
Total tax for the year 28,745 15,841
Notes
37
Fan Milk inTernaTional a/sSofiendalsvej 88ADK-9200 Aalborg SV.DenmarkTel.: +45 96 33 80 00Fax: +45 98 18 93 22www.fanmilk.com
eMiDan a/sSofiendalsvej 88ADK-9200 Aalborg SV.DenmarkTel.: +45 98 18 90 00Fax: +45 98 18 93 22
Fan Milk lTD.No. 1 Dadeban RoadRing Road North, Industrial AreaAccraGHANATel.: +233 (302) 224421Fax: +233 (302) 221951
Fan Milk plc.Eleiyele Industrial LayoutIbadanNIGERIATel.: +234 (2) 2412032Fax: +234 (0) 8034040727
Fan Milk s.a.Zone IndustrielleB.P. Port 9130LoméTOGOTel.: +228 (223) 7160Fax: +228 (227) 0273
Fan Milk s.a.r.l.04 BP - 1049 RFU-ILOT4888 AKPAKPA/PLM face ISPECCotonouBENINTel.: +229 21374150Fax: +229 21374151
Fan Milk s.a.r.l.Secteur 9, Lot 14Zone Industrielle de GounghinOuagadougou 01BURKINA FASOTel.: +226 50340506Fax: +226 50340507
FinaMark s.a.31, Rue des Brasseurs Zone 3 C 1453 Abidjan 18CÔTE D’IVOIRETel. : +225 21248676Fax : +225 21258665
Fan Milk liBeria lTD.1000 Monrovia 10Bushrod IslandFree Port - Fishing PierMonroviaLIBERIATel.: +231 (0)6 281 256
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